Indian Cryptocurrency exchange WazirX receives show cause notice from ED. As reported by Moneycontrol, The Enforcement Directorate initiated the FEMA investigation based on an ongoing money-laundering probe into Chinese-owned “illegal” online betting applications.
The Enforcement Directorate (ED), issued a show cause notice to WazirX. Also issued to Nischal shetty who is Co-founder, CEO, and Director of WazirX. Apart from this Sameer Mhatre has also been issued the same. The issued notice is under the Foreign Exchange Management Act (FEMA) 1999, for transactions involving cryptocurrencies worth ₹2,790.74 crores.
ED initiated the FEMA investigation based on an ongoing money-laundering probe into Chinese-owned “illegal” online betting applications, the agency said in a statement. WazirX is an Indian cryptocurrency exchange where you can buy Cryptocurrencies such as Bitcoin, Ethereum, and other major currencies.
Different government agencies are working to regulate, however it is moving at a slow pace. As per ED, Chinese nationals had laundered proceeds of crime worth approx. 57 crore. Converting the Indian rupee deposits into cryptocurrency Tether and then transferred them to Binance wallet.